2. Using the information provided, estimate how much cash investment DermaCare will require until it can cover
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Question:
2. Using the information provided,
estimate how much cash investment DermaCare will require until it can cover the costs of its Direct TV campaign. Use the excel sheet provided to come up with an estimate. Assume that: a. It will take 5-10 months until the product is ready to be sold and the cash burn rate is $120,000 per month. b. It costs Dermacare $14 to produce and stock each unit and the retail selling price is $50 c. Fortnightly cash spend on DRTV starts at $50,0000 a fortnight and peaks at $400,000 a fortnight at fortnight 5. d. From fortnight 5 onwards fortnightly DRV sales grows at 10%.
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